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Epson inks strategy to foray into laser printer segment -- Plans a slew of models to counter Hewlett-Packard range

Ratna Bhushan

NEW DELHI, March 30

IN recognition of the huge potential of the domestic laser printer market, the Rs. 140-crore Epson-India, part of Seiko Epson Corporation of Japan, is in the process of launching a series of laser printers.

While Epson has already been marketing dot matrix and inkjet printers, this is its initial foray into laser printers.

The company has opted for soft launches in phases across the four metros, besides other key cities, including Bangalore.

In all, five new laser models in the monochrome and colour ranges are being introduced. Of these, three are basic models and one each fits in the high-end and entry-level categories.

In addition, Epson plans to roll out a six-colour cartridge photo printer in May, followed by three laser models in June. The intent, according to company sources, is to offer a range wider than what Hewlett-Packard (HP) offers, Epson's closest competito r.

The laser printer market is dominated by HP, which enjoys an 89 per cent share. ``We believe we can crack any monopoly, and are keen to make a dent in the laser market. We will respond appropriately to home users and corporates,'' Mr. Paramjit Singh Puri , Senior Country Manager, India, said.

The printers are priced between Rs. 19,500 and Rs. 3.5 lakhs, a range Epson sees as very competitive. In what is perceived as a conscious decision, Epson's prices are about 5-7 per cent lower than what HP offers. Epson, for example, is offering an A3 siz e colour laser printer for the price of an A4, which can be upgraded to a colour copier or scanner and also into a colour management system, he claimed.

Apart from pricing, the company sees its core strengths on such parameters as lower running costs and patented BiRITechnology. Its entry level printers come equipped with technology for faster printing and compatibility with Apple users, which Epson clai ms is a unique proposition.

Another first is a mailbox with an electronic password for one of its models to ensure secure network printing.

Supporting the launch is a comprehensive marketing plan, for which the company has earmarked a budget of 25 per cent in addition to its `normal' marketing budget. Mr. Puri refused to put an exact figure to the spends, citing competitive reasons.

The company proposes to focus sharply on the corporate and Government sector, where HP has a strong presence, while Epson's share is minuscule.

For the record, Epson is already entrenched in the home and SOHO segment.

``The marketing initiatives will be tailored around the product, building infrastructure to boost after-sales support network, wide basing service centres and customer building activities,'' Mr. Puri said.A customer relationship management programme, for example, will include product education for distribution channels, efforts towards building collateral and merchandising and capsules on interactive computer-based training.

Besides putting up round-the-clock helplines in Bangalore, Delhi, Chennai and Calcutta, Epson will increase the number of authorised service centres from the current 50 to 100 by this year-end. Each centre will involve investments of roughly Rs. 2 lakhs.

Meanwhile, consolidated regional support systems (inclusive of service centres, helplines and mobile vans) are expected to be operational in Delhi and Chennai shortly, following similar units in Mumbai and Bangalore.

An introductory advertising blitz on print and outdoor is already running, while ground-level promotions like contests have been initiated. Epson promises to roll out different promotion packages for consumers every quarter. The current print campaign fo r laser printers, featuring model Sushmita Sen, has been split into three components _ brand-specific, corporate and tactical.

Epson India operates through three distributors _ Tech Pacific India Ltd, Aditya Infotech (P) Ltd and Redington India Ltd. While 500 dealers have been appointed for the low-end range, Epson will have a team of 100 dealers for high-end printers by year-en d.

With all these initiatives in place, Epson expects to up its turnover to Rs. 240 crores by 2000-2001.

On the dotted line

The domestic printer market is estimated at roughly 8,00,000 units by volume, and is growing at 30-40 per cent. Inkjets is the fastest growing segment in the industry, with a market size of 3,00,000 units by volume. The size of dot matrix printers is abo ut 2,50,000 units, while that for laser printers is 45,000 units.

Epson has an overall share of 27 per cent in the printer market. In inkjets it has a 22 per cent share, and a 30 per cent share in the dot matrix segment, where it claims to be the leader. In lasers, the company is aiming for a 10 per cent share in the i ntroductory year.